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Dhara Rail Projects IPO
Dhara Rail Projects Ltd
₹2,40,000 /1000 sharesMinimum Investment
Dhara Rail Projects IPO Details
| Bidding dates | Minimum investment | Lot size | Price range |
|---|---|---|---|
| 23 Dec ‘25 - 26 Dec ‘25 | ₹2,40,000 | 1,000 | ₹120 - ₹126 |
| Issue size | IPO doc | Tentative allotment date | Tentative listing date |
|---|---|---|---|
| 50.20 Cr | RHP PDF | 29 Dec ‘25 | 31 Dec ‘25 |
| Face value |
|---|
| 10 |
Subscription rate
As of 24 Dec'25, 04:31 PM
| Qualified Institutional Buyers | 4.55x |
| Non-Institutional Investor | 4.15x |
| Retail Individual Investor | 3.82x |
| Total | 4.10x |
About Dhara Rail Projects
Founded in
2010
MD/CEO
Mr Tejas Lalit Mehta
Parent organisation
Dhara Rail Projects Ltd
Strengths & Risks of Dhara Rail Projects
Strengths
Risks
The company is ISO 9001:2015 certified for its quality management systems.
Dhara Rail Projects claims to have a diversified order book of 60 ongoing projects across India, amounting to Rs 143.78 crore for Indian Railways as of December 12, 2025. In its industry, the company considers the number, size and duration of simultaneous projects as an indicator of anticipated future revenue.
The company claims to have a long-standing association with Indian Railways since its incorporation, with work obtained through competitively tendered direct contracts and pre-bid arrangements with various OEMs. It further claims that over time its reliance on OEM collaborations has reduced, with a greater share of business now coming from direct contracts across multiple zones, including Central, East Coast, Western, North Central and Eastern Railways, leading to lower revenue concentration in a single zone.
The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 26.60 crore in FY23 to Rs 31.47 crore in FY24 and Rs 44.48 crore in FY25. PAT increased from Rs 1.06 crore in FY23 to Rs 2.97 crore in FY24 and Rs 6.53 crore in FY25.
Dhara Rail Projects’ business and revenue are substantially dependent on the Ministry of Railways, Government of India. Revenue from direct railway contracts accounted for 74.60 percent, 69.18 percent, 31.44 percent and 35.18 percent of revenue from operations in the period ended September 30, 2025 and FY25, FY24 and FY23, respectively, while revenue from pre-bid OEM arrangements contributed 25.40 percent, 30.82 percent, 68.56 percent and 64.82 percent in the same periods. Any adverse change in railway policies, budget allocations, contract terms, or cancellation/foreclosure of such contracts can materially affect the company’s business, cash flows and financial performance.
Dhara Rail Projects operates in a labour-intensive segment and reports sizable employee benefit expenses. Employee benefit expenses accounted for Rs 8.53 crore (44.15 percent) of the company’s total expense for the period ended September 30, 2025; Rs 11.07 crore (28.07 percent) in FY25; Rs 10.92 crore (36.10 percent) in FY24 and Rs 9.17 crore (35.38 percent) in FY23. Any sustained increase in employee-related costs or difficulty in retaining and replacing staff could adversely affect the company’s profitability and ability to execute projects on time.
Revenue from the Central Railway Zone accounted for 22.22 percent, 37.76 percent, 65.90 percent and 70.53 percent of total revenue from operations in the period ended September 30, 2025 and FY25, FY24 and FY23, respectively. Any unfavourable operational, policy, political, social, or economic developments in the region, or the company’s inability to meaningfully expand into other geographies, could adversely affect its business, increase revenue concentration risk, and hurt overall financial performance.
The company reported negative cash flow from operating activities of Rs 4.97 crore in FY25, Rs 2.03 crore in FY24, and Rs 1.57 crore in FY23. Additionally, negative cash flow from investing activities amounted to Rs 5.62 crore in FY24 and Rs 2.41 crore in FY23. The company also reported negative cash flow from financing activities amounting to Rs 0.57 crore for the period ended September 30, 2025 and Rs 7.03 crore in FY25. If this trend continues, the company may need to rely more on external funding or asset disposals, which could adversely affect its liquidity, business operations and overall financial condition.
The top 10 suppliers accounted for Rs 13.07 crore (94.76 percent) of the company’s total material purchases for the period ended September 30, 2025; Rs 12.87 crore (90.85 percent) in FY25; Rs 22.03 crore (91.33 percent) in FY24 and Rs 13.86 crore (87.50 percent) in FY23. The company does not have long-term supply contracts with these vendors. So, any disruption in supplies or loss of key suppliers could adversely affect its operations, margins and cash flows.
Material sourcing is geographically concentrated, with 91.89 percent, 68.22 percent, 96.14 percent and 95.17 percent of total material purchases in the period ended September 30, 2025 and FY25, FY24 and FY23 coming from Maharashtra. Furthermore, Dhara Rail Projects conducts all its operations from its registered and corporate office in Mumbai, Maharashtra. Any adverse political, social or economic developments in Maharashtra, or supply chain disruptions in the state, could negatively impact material availability, project execution and the company’s overall financial performance.
As of September 30, 2025, the company had trade receivables of Rs 24.12 crore, up from Rs 20.98 crore in FY25, Rs 5.87 crore in FY24 and Rs 4.75 crore in FY23. Any delay in recoveries or increase in write-offs could create liquidity pressure, lead to higher working capital borrowings and negatively affect its profitability and cash flows.
The company, its directors and promoters are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could hurt the company’s business prospects.
As of September 30, 2025, the company had outstanding financial indebtedness of Rs 21.28 crore. Failure to service or repay these loans could harm the company’s operations and financial position.
Dhara Rail Projects Financials
*All values are in Rs. Cr
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Application Details of Dhara Rail Projects IPO
| Apply as | Price band | Apply Range | Lot size |
|---|---|---|---|
| Individual investor | ₹120 - 126 | ₹2 - 5 Lakh | 1000 |
For Dhara Rail Projects IPO, eligible investors can apply as Individual investor.